Mortgages to restructure, build or buy commercial real estate

The commercial mortgages represent a very broad category, including all those of medium or long term, which can be secured by a mortgage and not (they are very much in use the unsecured loans), for use in a non-private customers and with different purposes from purchase, construction or renovation of residential units of residential type.

Commercial mortgages can therefore concern the purchase (or construction and renovation) of business premises, but also the financing for the purchase of instrumental goods. While this latter type, mostly offered in the form of unsecured mortgages, is with a certain frequency, for the classical loan intended for the purchase of business premises there may be limitations on the choice.

Unsecured or Mortgaged Mortgage?

Better an Unsecured or Mortgage Loan? In the case of business, there are no big limitations on the amounts that can be raised even in the first case (where personal and non-mortgage collateral is required). This is all the more true when it comes to mortgages with subsidized rates, resulting from conventions with entities, consortia and business organizations for which the duration is shorter, generally reaching up to 5 years.

The agreements above all have a regional character, so mortgages can be obtained, even from an important bank, but only for the activities carried out in that specific Region. The mortgage loans are more suited to the purchase, especially for high-value business premises, but they are harder to find.

Depending on the value of the transaction, you can “negotiate” the terms of the mortgages with the various banks, even if there are no specific mortgages. In order to get easier conditions, you can also contact the various organizations that operate at the territorial level, to ensure the existence of agreements, the establishment of guarantee funds, etc.

For these reasons, the differences between the various proposals may be considerable, even if the amortization plans do not exceed 15-20 years, and the choice of rates is adjustable on the fixed or variable , but not on mixed mortgage types or with option .

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